We are a not-for-profit organisation.We invest any money that we make back into our business. We use this money to build new affordable homes and to maintain or improve the homes that residents already live in.
For every new property that we develop under our 2011-15 Affordable Homes contracts with the Homes and Communities Agency and the Greater London Authority, we will fund around 86% of the cost. This percentage is made up of:
Contributions from our own internal resources
Money that we borrow from lenders such as banks
Recycled grant. This is grant money originally allocated to another development, but allowed to be transferred because we have sold the original property.
Cross-subsidies from properties that we sell or convert to Affordable Rent.
The rest of the funding, averaging around 14%, is paid for by a grant from the Government.
This means that for every £1 of Government subsidy for building new homes, the Group adds more than £6 from private finance and our internal resources.
We are able to contribute in this way because of our long-term approach to financial planning, which includes continually investing to keep all of our existing homes in good condition.